JFE Steel Plans Offshore Bar, Wire Rod Processing Center

JFE Steel started to discuss establishment of offshore secondary processing center for special steel bar and wire rod. The firm kicks around the center in China or India where many Japanese automobile makers penetrate. The firm plans to establish the plant when Japanese automobile makers are accelerating overseas advance and they are requesting local purchase to steel makers.

Japanese automobile makers are building up production capacity in overseas factories, and are driving up local purchase of material. Mr. Ryoji Kubo, managing director of JFE Steel, said many users are requesting special steel bar and wire rod products supply and establishment of processing center JFE Steel. The firm simulates the center for drawing, pickling and annealing process.

JFE Steel sells special steel bar and wire rod at over 50% for automobile and others for construction machinery and industrial machine makers. The firm continued full operation for the output of special steel bar and wire rod in fiscal 2010, while the output decreased by about 20% temporary by the disaster of mega earthquake. However, the firm is recovering to full operation to supply for JFE Bars & Shapes, which closed Sendai works by disaster of earthquake. JFE Steel expects to continue tight supply due to increased automobile output in the last half of fiscal 2011.

The firm is building up production capacity for large diameter special steel bar, and plans to increase productivity by 15-20% by speed-up of cut process for steel bar and enhancement of flaw detector within the first half of fiscal 2011 to respond increased demand.